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An Najah National University Faculty of Engineering: Dr. Mohammed ABUNEMEH

This document outlines a course on construction economics and management. It will cover topics like the life cycle of construction projects, engineering economy, time and interest effects on money, construction scheduling, cost estimating, contract types, and project management. Students will be graded based on three exams. References include textbooks on estimating construction costs, construction administration, and construction planning and scheduling.

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42 views

An Najah National University Faculty of Engineering: Dr. Mohammed ABUNEMEH

This document outlines a course on construction economics and management. It will cover topics like the life cycle of construction projects, engineering economy, time and interest effects on money, construction scheduling, cost estimating, contract types, and project management. Students will be graded based on three exams. References include textbooks on estimating construction costs, construction administration, and construction planning and scheduling.

Uploaded by

ayayquddomi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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An Najah National University

Faculty of Engineering

CONSTRUCTION ECONOMICS &


MANAGEMENT

Dr. Mohammed ABUNEMEH


Course Outline
 Introduction
 Life cycle of construction project
 Foundation of engineering economy
 How time and interest affect money
 Examples on combined factors
 Present worth analysis
 Construction scheduling technique and usage of bar chart.
 Critical Path Method (CPM); precedence diagramming method
 Resource planning and cash flow analysis
 Type of construction contracts
Course Outline
 Quantity surveying & Estimating construction cost
 Bid documents
Grading System
 Grading policy for this course will be based on the following:
 First Exam 25%
 Second Exam 25%
 Final Exam 50%
Text Book & References
 Text Book:
 Estimating Construction Cost, Robert R. Peurifoy
 Edward Fisk and Wayne Reynolds, "Construction Project
Administration", 9th edition
 Hinze, Jimmie, “Construction Planning and Scheduling”, 3rd Ed.,
2008
 Blank, L. & Tarquin, A., (2012), Engineering Economy 7th
Edition, New York: McGraw-Hill.
Introduction
 Definition of Terms:
 Construction Management
 Construction Contracting
 One-to-One Concept (in organization)
Construction Management
 Construction:
The process by which material, equipment,
machineries are assembled into a permanent facility.
 Management
The planning, directing, and controlling of resources
(Material, Manpower, Machines, Money) to achieve
the desired goal (Time, Cost, Quality)
Construction Management
 Covers the following area:
 Planning and Scheduling
 Business and communication system
 Material control
 Payment procedure
 Changes to the work
 Inspection and acceptance
Construction Contracting
 Contracting:
The legal and business activities needed for initiating,
executing, and terminating a construction contract.
One-to-One Concept
 Previous Administration functions involve different
parties (Owner, contractors, Engineers)
 To minimize confusion, conflicts, claims, use:
One to One concept
 Each party has a single representative who
communicates important project information and
orders.
Classification of Construction Projects:
 By Size: Small, Medium, Large, Mega.
 By Ownership: Private, Public, Military.
 By Usage: Residential, Commercial, Industrial,
Utility. (Usage can be expanded to subcategories).
 By Scope (preferred):
 Building (Residential, non residential), emphasis
on aesthetics.
 Engineering (Highway, Heavy, Utility) emphasis
on function
 Industrial: emphasis on production
The Construction Participants
 Three key players in the game:

 The client (or Owner or stakeholder)


 The A/E or consultant
 The contractor (or Constructor or Builder)
Relationship Among Parties

contract General
Owner
build
Contractor
own
contract Project
contract
build
Design

A/E Subs
The Owner
The owner is responsible for:
Funding and paying bills for the construction of project.
Determining what the project will include (also called the
scope of the project), when the project can begin and must
end (the schedule),
Receive the ultimate benefits of the finished project.
The Owner
 Owner organizations can be broken into two major categories,
public and private.

 A public agency exists for the ultimate benefit of the


citizens, the general public. Examples of public projects:,
an highway, or an Universities, schools.

 A private organization can be described as any individual,


partnership, corporation, or institution that builds a project
for its own use or for resale.

 The owner enters into separate contract with Architect and


contractor.
The Design Professional
The consultant is a party of the contractual relationship has
professional skills in engineering whether civil, structure,
architectural, mechanical. Etc.
Who acts in behalf of the client.
The Design Professional
The major role of the design professional:

Is to interpret or assist the owner in developing the project's scope,


budget, and schedule and to prepare construction documents that
will be used by the construction contractor to build the project.

The architect typically sub-contracts portions of work to other


design professionals such as structural engineers, landscape
architects, electrical & mechanical engineers

In almost all cases the design professional is a licensed, registered


professional who is responsible for the physical integrity of the
project.
The Contractor
 A contractor is an individual or an entity that enters into a
contract with the owner to carry out the construction work.

 If only one contractor is appointed he may be known as the


main/prime contractor.

The Contractor is responsible for the interpretation of the


contract documents into physical facility. Transform idea to
reality
The Contractor
In most cases the prime contractor divides the work among
many specialty contractors called subcontractors. On a large
project these subcontractors may also divide up the work into
even smaller work packages
The Subcontractors
 A contractor assigned and work under the supervision of the
main contractor and who has special skills, experiences and
equipment to deal with specialized aspects of the work.

 Nominated subcontractor
 Non-nominated subcontractors
Project Life Cycle
The major phases in the project cycle that are common to
most design and construction projects are:

Project Planning
Design
Schematic Design
Design Development
Contract Documents
Construction Procurement (Bidding Phase)
Construction
Occupancy
Project Planning Phase
 During this phase of the project the owner makes decision that
set the tone for the project. All projects begin with an idea or a
need
 The most critical decision that is made during this project
phase is to make a decision as to whether or not to proceed
with the project (called a go/no go decision).
Project Planning Phase
Phase activities:

Feasibility studies
Budgeting & Financing
Scheduling
Site selection/acquisition
Site investigation
Design Phase
Design process involves:
Schematic Design
Talk to owner, rough sketches
Design Development
Major Systems & component selected
Contract Documents
Preliminary Cost estimate
Develop Preliminary working drawings
Develop working drawings with Specifications
Schematic Design
The A/E reviews and evaluates the owner’s program and budget
requirements and discusses with the owner alternative approaches to
the design and construction
During schematic design, the A/E prepares conceptual design
documents. These may include: preliminary sketches ,small scale
schematic plans, elevations, sections, diagrams, and other graphic
and written documents, General written description of project.
The completion of the schematic design phase represents
approximately 30 percent design completion for the project
Design Development
The design development phase takes the project from about 30
percent to approximately 60 percent design.
It is the time when the design team will be evaluating and selecting
all the major systems and components of the project.
During this phase of the project the design team is involved in the
evaluation and finalization of all the architectural components and
project systems.
Contract Documents
Construction Procurement:
Solicitation
Proposal preparation
Bid/proposal opening
Bid/proposal evaluation
Award of contract
Final negotiation
Construction
Mobilization
Subcontracting
Purchasing
Permits
Site preparation
Foundations
Interior finishes and equipment
Occupancy/ Post Construction:
Start-up and testing
Leasing
Operation
Correction
Repairs/maintenance
Building evaluation
Level of Influence on cost

Project Cost
Influence

Time

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